US stocks suffer worst losses in 38 years; financial markets lose $9.5 trillion in three days

US stocks are heading for their worst losses in 38 years, and global stock markets also suffered heavy losses. Financial markets deepened their losses and headed for a collapse on Monday amid panic selling, while US President Donald Trump insists on imposing tariffs.

US stocks fell again in a volatile trading session on Monday, as the White House remained defiant even after imposing shockingly high tariffs on most of the United States' major trading partners, causing the market to collapse.

According to a Bloomberg report, global financial markets lost $9.5 trillion over the course of three days—Thursday, Friday, and Monday—and US stocks are on track to record their worst three-day losses since 1987, or about 38 years.

The yield on 10-year US Treasuries rose 15 basis points to 4.15 percent. In the latest development, Trump threatened to impose 50 percent higher tariffs on China, in addition to the existing tariffs, as the two countries exchanged threats.

The seven technology companies

Shares of the seven largest technology companies on Wall Street fell on Monday, in a downward trend that saw the tech giants lose approximately $2 trillion in combined value.

This comes amid investor concerns about the financial repercussions of Trump's global tariff war. The seven major companies are Apple, Microsoft, Nvidia, Alphabet, the owner of Google, Meta Platforms, the parent company of Facebook, Amazon, and Tesla.

The latest decline came after Dan Ives, one of Wall Street's most bullish tech analysts, cut his price targets for Apple and Tesla shares and warned of "economic disaster from tariffs."

Tesla's stock plunged 7% to $223, the largest loss among the Big Seven. Combined, these companies have lost more than $6 trillion in market value since reaching unprecedented levels in late 2024.

Shares of Apple, Alphabet, and Microsoft traded at their lowest levels in a year, with the iPhone maker's stock falling 4.8%, while shares of other companies among the G7 fell between 1.5% and 4.8%.

These companies accounted for a significant portion of the S&P 500's losses, which exceeded $5 trillion over the past two trading sessions.

Wedbush analyst Ives said that American technology company Apple is the most affected by tariffs on goods imported from China, where most iPhones are assembled.

stock market losses

The frenzied sell-off in financial markets continued on Monday, as nervous investors abandoned hopes that Donald Trump would change his tariff policy. According to Bloomberg, stocks fell, reducing the value of global stocks over three days to about $9.5 trillion.

The Standard & Poor's 500 Index fell 2 percent, bringing its decline from its February closing high to nearly 20 percent, which represents a bear market by Wall Street standards. At the session's lows, the S&P 500 was in bear market territory.

The Dow Jones Industrial Average fell 962 points, or 2.5 percent, after consecutive losses of 1,500 points for the first time ever at the end of last week.

The Nasdaq Composite Index fell 1.7 percent, continuing its decline as investors sold their winning technology stocks to raise cash. The Nasdaq is also down 24 percent from its record high.

Stocks saw a brief rally shortly after the open, pushing the Dow Jones Industrial Average into positive territory. Speculation about some kind of temporary pause in tariffs spread on trading floors and social media, possibly contributing to the price rise, the White House told CNBC.

Traders have increased their expectations for interest rate cuts by the Federal Reserve this year, estimating the equivalent of five quarter-point moves. Swaps also reflected the risk of emergency action, reflecting a 40% probability of a rate cut by next week, well before the Fed's May meeting.

Trump's determination over the weekend to press ahead with tariffs, despite warnings of recession from prominent economists and criticism from hedge fund managers like his supporter Bill Ackman, reinforced the sense that the president is unlikely to back down from his strategy.

Trump urged reporters aboard Air Force One on Sunday to "ignore the markets for a moment," in a show of disdain for the sell-off sweeping Wall Street.

Source: Yemen Youth Net + Agencies + Bloomberg